I've seen that with some, but not all, of the lyrics in iOS 10. Lyrics in iTunes look fine.
I also have numerous songs that I know have the lyrics (I can see the lyrics in iTunes), but they are not being transferred over to my iPhone.
My music library is pretty static. Mostly, these are lyrics that were downloaded to iTunes years ago. I have had no problems with previous versions of iOS - going all the way back to 2.2!
I have checked my lyrics and seems that mine is fine.
<br> is equivalent to a press of enter on keyboard. Perhaps at some point, music app cannot decode this breaking correctly.
Try to copy lyrics from iTunes, paste it into notepad(PC) or textedit(Mac), and copy, paste back and see if they are still jammed.